“IMF violated regulations on Greece’s loan”
Wall Street Journal mentioned violations from the part of the International Monetary Fund on the occasion of yesterday's "failed attempt" from the Obama administration before the Senate to link emergency aid to Ukraine with changes negotiated from IMF in G-20 countries, four years ago.
The editorial of the newspaper argued, inter alia, that "Republicans are reluctant to grant increased influence in European countries within the IMF, because they accuse the organization for relaxation of regulations regarding the loan program of Greece, with the aim of rescuing European banks". As John Taylor, an economist at Stanford University, stated last month to Wall Street Journal, IMF violated regulations requiring countries with unsustainable debt to restructure in order to provide a loan to Greece, so it could shift that financial risk from European banks to IMF.
In addition, last week, according to the newspaper, an internal audit within IMF found that IMF projections of growth "were optimistic" for countries like Greece and Ukraine that were credited larger loans in the "exceptionally access". In conclusion, it is noted that "Republicans fear that the IMF will make a discount window for loans, in order to help wasteful governments trying to postpone reforms".
